KUALA LUMPUR (April 9): Specialty chemicals manufacturer SumiSaujana Group Bhd (KL:SUMI) announced on Wednesday that it will continue its overseas expansion into the Middle East and North America, amid fears of a global trade war.
SumiSaujana, which earlier debuted on the ACE Market significantly lower than its initial public offering (IPO) price, noted that it will push ahead with its plans, using proceeds raised from its IPO.
The company raised RM74.4 million from its IPO, which was priced at 24 sen a share.
“We are still quite ‘gung-ho’ (enthusiastic and eager) about our expansion into the Middle East and North America, despite the current tariff imbalance and all this [intensified market competition],” said executive deputy chairman Toh Chee Seng during a virtual press conference after the listing. “The dust will settle eventually — maybe in weeks or months — but this is just the beginning for many years to come,” Toh said.
The progress of setting up new manufacturing facilities in the Middle East remains ongoing, while plans for North America are nearing finalisation, according to SumiSaujana chief executive officer Norazlam Norbi.
“Within the next three- to six months, North America will likely be the site of either a joint venture or a facility for immediate use,” Norazlam said.
SumiSaujana is mainly involved in the manufacturing of oil-and-gas specialty chemicals, trading of specialty and industrial chemicals, and provision of technical-related support services.
The company derives over 70% of its revenue from international markets, including the Asia-Pacific, Middle East, Africa, Europe and the Americas.
In Malaysia, its clientele includes state-owned energy giant Petroliam Nasional Bhd (Petronas) and various multinational corporations providing oil and gas (O&G) services.
Despite a poor debut, with shares opening at 18 sen — a 25% drop from the IPO price, Toh downplayed market timing as a major concern.
“No one can time the market — it’s never a good time or a bad time [for listing]. For us, we have our business strategy moving forward,” he said.
“With the IPO proceeds, we can streamline operations, (as well as) acquire a new corporate office and warehousing facilities. These investments will create long-term value for stakeholders and our customers,” Toh added.
Moving forward, the company plans to diversify beyond oil and gas by investing in specialty industrial and oleochemical products, with a focus on sustainability. These include biopolymers and biopolyols co-developed with the Malaysian Palm Oil Board (MPOB).
“There’s a growing shift towards less-toxic and environmentally friendly alternatives. Our innovation in these product lines is aligned with that trend and presents strong growth potential,” said Norazlam.
SumiSaujana shares closed at 18 sen on its Bursa debut on Wednesday, giving it a market capitalisation of RM260 million. Its IPO price was 24 sen per share.
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